Asian Journal of Research in Marketing
Year : 2015, Volume : 4, Issue : 2
First page : ( 117) Last page : ( 122)
Online ISSN : 2277-6621.

Brand Valuation: A New and Important Concept of Marketing

Saha Nabina

Assistant Professor, Department of Commerce, Bankura Sammilani College, Kolkata, India

Online published on 27 April, 2015.

Abstract

Today for most of the companies tangible assets are regarded as main source of business value. This is not for the reason that management failed to recognize the importance of intangibles but it is not possible for them to quantify the same properly. A brand can be valued for different reasons, as for brand strategy, financial reporting, mergers and acquisitions, litigation and also helps to make decisions on business investments. Brand valuation is not usually carried out because it is a time consuming process and expensive also. Anyway, there exist mainly three approaches in brand valuation, as cost approach, the market approach and the income approach. The wave of brand acquisitions and mergers on the world market caused a large amount of goodwill that most accounting standards was not able to deal it in traditional way. There are some companies which have already started inclusion of brand value into their financial statements (as Coca Cola) but there exist many company also which do not do that properly.

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Keywords

Intangibles, value, Return on investments (ROI).

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